20 Dec 5 Companies Revolutionizing Education Technology and Smart Learning
Education Technology is a burgeoning industry owing to a rise in internet penetration and use of smart phones. There is a growing acceptance of e-learning and many governments are providing impetus to e-learning initiatives. The advancements witnessed in the smart phone technology have revolutionized the delivery of education, with more and more people opting for digitized content. According to a report by EdTechXGlobal, the education technology market will grow by 17 percent per annum to reach $252bn by 2020.
The growth in the market will primarily be driven by population growth, with an estimated 2.7 billion students worldwide by the year 2035. The educational needs of such as large population cannot be addressed through conventional learning institutions, due to scarcity of resources to accommodate such a large population. In addition, leading educational providers are looking for newer avenues to market their courses and services to a wider audience base worldwide.
As globalization and automation transform the face of the workforce, with a rising number of repetitive low-skilled jobs being automated, employees will need to add to their qualifications and skills. According the report, by 2025, 50 percent of the current jobs will not exist; thereby the demand for re-training will see people resorting to educational technology. The industry witnessed a record fundraising of $1.45 billion in 2018 and has seen the emergence of leaders, with investors concentrating on relatively fewer firms.
We take a look at few of the frontrunners in the industry who are redefining the delivery of education.
BoxLight Corporation (NASDAQ: BOXL)
Market Cap: $13M; Current Share Price: 1.16 USD
Data by YCharts
Boxlight is a vertically integrated comprehensive solution provider that develops and sells interactive classroom technologies. In addition, the Company also provides hardware engineering, manufacturing, content development, software solutions and services such as installation, training, consulting and maintenance. The Company products are available in over 32 languages and are marketed in over 60 countries. It provides a range of learning options such as whole-class learning, group collaborations, formative assessment and STEM-based learning.
The Company has a robust network of more than 500+ resellers and has a client list consisting of Klein ISD, Gwinnett county public schools CCPS and Atlanta Public Schools to name a few. Boxlight has been on an acquisition spree, which started in 2016, with the acquisition of Genesis Collaboration, followed by Mimio, Boxlight Group, Cohuborate, Quizdom, EOS Education and Modern Robotics.
Boxlight has entered into a partnership with the Aldrin Family Foundation and ShareSpace Education for helping develop core skills in programming, engineering and robotics. Furthermore the Company launched a series of new products in 2019 such as Boxlight NDMS (Network Device Management System) MimioInteract and On-demand educator certifications for Mimio and Qwizdom to name a few.
The Company has many laurels to its credit including being the winner of 2018 Tech Advocate Award Winner in the Mimiospace. In December 2019, the Company received additional funding for its working capital requirements, through a follow-on investment from Lind Global Macro Fund, LP, an investment fund managed by The Lind Partners; a New York based institutional fund manager as per a Company statement.
Rosetta Stone Inc (NYSE: RST)
Market Cap: $429M; Current Share Price: 17.83 USD
Data by YCharts
Rosetta’s is a leader in offering technology based learning solutions in three verticals namely Literacy, E&E Language, and Consumer Language in the U.S as well as International Markets. The Company offers cloud-based learning solutions in more than 30 languages, with Lexia Learning its literacy education division, leading the bandwagon in the literacy education industry. Rosetta, earlier known as Fairfield Language Technologies, started with sales of its language-learning software to schools in 1993, which were then made available in 2000, with the release of its first online solution.
A global leader in digital education, the Company provides literacy services to over 12,000 corporations and 22,000 educational institutions worldwide and has retail agreements with leading players such as Amazon.Com, Barnes&Noble, BestBuy and Target. It is an industry pioneer in the implementation of Deep ED Tech and has a 100 percent subscription based business with high incremental margins. The Company is one of the leading learning franchises in the U.S with over 7000 educational and enterprise customers and an extensive customer base of more than 1.5 million language learners worldwide.
As per the Company’s Q3, 2019 financial results, it registered a 21 percent increase in its bookings growth and a 6 percent revenue growth. Rosetta ended the quarter with cash and cash equivalents of $36.2 million with no debt. The Company’s focus for the next quarter is on increasing its field sales force to provide high ROI leverage and align its K-12 marketing for literacy and language. In addition it is working on developing a norm-referenced and criterion referenced Lexia assessment, which can predict future performance and prescribes instructional intensity.
Zovio Inc (NASDAQ: ZVO)
Market Cap: $60M; Current Share Price: 2.05 USD
Data by YCharts
Zovio uses predictive data and analytics to address learning needs of educational institutions as well as corporations, by offering comprehensive solutions encompassing higher education enrollment, retention, academic and tuition and employee learning, retention and engagement solutions. The Company creates customized learning solution by using data analytics to factor in clients individual experiences. The use of predictive analysis enables the Company to predict and provide reliable outcomes based on past and present courses opted for. Zovio was earlier known as Bridgepoint education and currently owns Ashford University.
The Company is focused on redefining the interaction between faculty and students, by empowering them to streamline feedback and analyze course curriculum, through use of analytics and technology. Zovio offers Faculty Management Systems (FMS) that simplifies the process of faculty on boarding, scheduling, payroll, professional development and faculty credentials along with a Faculty Score Index (FSI), which can track the performance of the team and also help improve faculty performance.
In addition it can also populate course health dashboards (CHD) that can assimilate student and faculty performance for evaluation of course effectiveness. Furthermore the Company also provides feedback tools such as Waypoint outcomes that are essential for understanding learning outcomes, student skills and conform to regional and professional accrediting bodies.
Constellation, a digital interactive ADA-Complaint platform, primarily developed for Ashford University, can automatically sync to the cloud and provide access to coursework material and notes, and also suggest pre- and post-test evaluations link for learners in areas of improvement. The Company also runs a technology bootcamp named FullStack Academy, an instant online tutoring service named TutorMe and [email protected] that curates courses for professionals based on their specific career goals.
Instructure Inc (NYSE: INST)
Market Cap: $1.9B; Current Share Price: 48.85 USD
Data by YCharts
The Company uses a SaaS model for providing learning, assessment and performance management systems worldwide. Instructure offers products and services in the Higher Education, K12 and Corporate space. It has more than 4000 customers ranging from Ivy league schools to corporate such as Harvard, Brown, Indiana University, Dartmouth, Swift, Stubhub, BBB and slack to name a few.
The Company’s Canvas studio is a next generation, interactive, video centric medium of learning that helps learners and instructors share feedback on the video timeline in real-time, enabling faculty to create interactive videos that encourages even reticent learners from sharing feedback, and contributing to the learning process. The system uses advanced data analytics to understand the impact of the videos and gauge audience interest. From a student’s perspective it allows them to upload project videos and obtain faculty and peer feedback using tools such as SpeedGrader. There is an option to assess students by creating quizzes, the feedback from which is then transferred to the Canvas GradeBook.
Instructure also offers employee engagement and development programs through BRIDGE, and fosters continuous learning, performance enablement, peer learning and career development. The platform is an integrated and personalized development solution for employee that offers actionable insights and promotes positive outcomes. In addition, it can be used to deliver scalable, effective and engaging learning programs that can be accessed anytime, anywhere through the convenience of a mobile app.
The Company that allows teachers to facilitate “video” discussions by creating “grids” was acquired by Microsoft in June 2018 and is offered free to educators and students around the word, just like office365. The platform is compatible with Chromebooks, iPads, iPhones, PCs, and Android devices. In addition it is compatible with other Microsoft offerings such as teams and OneNote. The 2018-2019 school year, witnessed the addition of 7,000 new educators and sharing of 530 million videos. The integration has also resulted in making the videos more accessible through use of Microsoft’s immersive reader, the ability to integrate segments into one video.
Flipgrids app offers tools that enable students to collaborate on projects and events, in addition to providing Google Docs and Microsoft Office 365 integration. The Company has also unveiled FlipgridAR, an augmented reality feature which will allow users to print real-world QR code stickers that support video and voice recordings in AR. Furthermore flipgrid now hosts topics from Code.org, HackingSTEM, NASA, Microsoft EDU, Find Your Grind, and Wonderopolis and has more in lined up.
The platform offers more than 10,000 ready-to-launch topics from fellow educators around the world through its Disco Library and can be customized to meet the specific needs of learners.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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